Analysis of Reddit User's $4,000 Weekly Gain Selling TSLA Cash-Secured Puts

A Reddit user shared on December 6, 2025, a $4,000 weekly gain from selling options, with TSLA cash-secured puts (CSPs) as a primary strategy. Key details include avoiding naked options and selling CSPs 10-20% below TSLA’s current price to limit downside risk.

TSLA’s price rose 5.8% from $430.14 (December 1) to $455.00 (December 5) [0], supported by a bullish broader market (NASDAQ +1.3%, S&P 500 +0.8%, Dow Jones +1.4% over the same period) [0]. This upward trend reduced the likelihood of TSLA’s price dropping to the CSP strike prices, allowing the user to keep full premiums.

Mixed TSLA-specific news—including SpaceX (Elon Musk-related) IPO rumors [1], a 19% UK sales decline [2], FSD legal controversies [3], Cathie Wood’s TSLA share sales, and Michael Burry’s overvaluation claim [4]—did not impact the stock’s upward trajectory, highlighting the influence of broader market sentiment.

1. Market Context Outweighs Company-Specific News
   : TSLA’s price gain occurred despite negative company news, demonstrating the dominance of macro-market trends during the period.
2. Strike Price Selection Drives CSP Success
   : Selling CSPs 10-20% below the current price reduced exercise risk during TSLA’s moderate (5.8%) price increase.
3. Liquidity Supports Options Trading
   : TSLA’s average daily volume of ~68.5M shares [0] ensured sufficient liquidity for executing options trades without significant bid-ask spread costs.

• Options Selling Downside
  : If TSLA’s price drops below the CSP strike, the user would be forced to purchase shares at the strike (potentially above the current market price), as noted by the user: “Selling options always works! Until it doesn’t.”
• TSLA-Specific Risks
  : FSD regulatory scrutiny [3], competition from BYD [2], and negative institutional sentiment [4] could pressure TSLA’s price.
• Market Correction Risk
  : A broader market downturn could reduce TSLA’s price, increasing CSP exercise likelihood.

• CSP Income Generation
  : In bullish/stable markets, selling CSPs can generate consistent premium income.
• TSLA Liquidity
  : High daily volume makes TSLA a feasible option for options traders.

• A Reddit user earned $4,000 in a week selling TSLA cash-secured puts with strikes 10-20% below the current price.
• TSLA’s 5.8% price rise December 1-5, 2025, amid a bullish broader market, led to CSPs expiring worthless.
• Mixed TSLA-specific news did not derail the stock’s gains, emphasizing macro-market influence.
• Risks include options downside, company-specific challenges, and market correction potential; opportunities include CSP income in favorable markets.